Many young professionals assume financial advisors are only for the wealthy—those with vast investment portfolios, substantial estates, or complex financial needs. This common misconception often prevents younger individuals and families from seeking professional financial guidance that could significantly improve their financial well-being.
Financial advisors can provide valuable insights and immense benefit for individuals of all ages, and this holds especially true if you are a HENRY (High Earner, Not Rich Yet) in your 20s or 30s or a mid-career working professional. Based on a study conducted by smartasset™, the younger an individual is when they begin working with a financial advisor, the larger the benefit they will receive from their advisor relationship.
As demonstrated in the graph below, an individual who begins seeking guidance from an advisor at 25 years old is likely to end up with a 212% higher net worth over their lifetime than if they had never worked with an advisor at all.
Conversely, if one waited until age 55 to begin working with a financial advisor, their net worth would likely grow to a level that is 70% higher than what it would otherwise be if they had never sought advisor guidance at all.
Many individuals delay working with a financial advisor because they believe they need more wealth to justify the cost. However, not having a financial plan can be far more expensive in the long run. Poor investment choices, unmanageable debt, and lack of retirement savings can lead to significant financial stress and missed opportunities.
Among a myriad of ways fee-only fiduciary financial advisors and planners provide value to their clients, they can help you avoid common pitfalls, such as:
Waiting too long to start saving and investing
Failing to maximize employer-sponsored retirement benefits
Overpaying in taxes due to lack of proper tax planning
Not having an emergency fund in place
Investing without a prudent risk mitigating strategy, asset allocation, or diversification
Financial success is not about how much money you have today—it is about making smart, informed decisions along the way that help you build wealth over time and achieve your financial goals and lifestyle aspirations. Whether you are looking to get out of debt, start investing, optimize your investments, plan for retirement, or protect and preserve the wealth you have already built, financial advisors are here to help you identify your goals and map out an actionable plan to achieve them.
Disclosure
RISE Investment Management, LLC ("RISE" or "RISE Investments") is an investment adviser registered under the Investment Advisers Act of 1940. Registration of an investment adviser does not imply any level of skill or training. This publication is solely for informational purposes and past performance is not indicative of future results. Any historical returns, expected returns, or projections are provided for informational purposes only. Any description of products, services, and performance results of RISE contained in this publication are not an offering or a solicitation of any kind. No advice may be rendered by RISE Investments unless a client service agreement is in place. Advisory services are only offered to clients or prospective clients where RISE Investments and its representatives are properly licensed or exempt from licensure. All of the information in this publication is believed to be accurate and correct as the date set forth. RISE does not have or accept responsibility or an obligation to update such information.